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Here's something for you. Stephen Durland is being sued by the SEC. Again:
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26075
The Complaint:
https://www.sec.gov/files/litigation/complaints/2024/comp26075.pdf
No posts in 2024 from the crying towel club? HAHAHAHAHAHAHA
My good friend did you receive your dividend cheques yet ? You didn’t hand your ownership over too your broker I’d hope, he he. I’m rich beyond my wildest dreams, he he.
No posts in 2023 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2022 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2021 from the crying towel club? HAHAHAHAHAHAHA
What goes around comes around my friend. Tax’s will have to be paid at some time. You can’t hide on your island for ever.
No posts in 2020 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2019 from the crying towel club? HAHAHAHAHAHAHA
You got a brain don’t you? Numbers don’t lie. Don’t be a follower but a greater. All the piggy backed assets have been sold off. There living high off the hog from the proceeds. Anyone can do the same. It’s how wealth is exchanged. Be it a lesson to you.
You are mentally ill.
No posts in 2018 from the crying towel club? HAHAHAHAHAHAHA
How technology exchange works. Garrett goes too Z Lynk and licenses the use of Z Lynk technology.
Z Lynk sells the technology based on the sales of the Garret equipment. They come to an agreement and Garret issues equity too Z Lynk. Under that agreement Z Lynk shares of Garret’s could and most likely be restricted from trade until Z Links debt is delt with. Z Lynk will most likely appoint an alias “ alian” to sit on Garrets board.
Z Lynk can put up its shares for collateral. If they do this they will recieve a portion of the 10% capital interest. This will be a none controlling amount of useually a 4% royalty from the capital cost.
Z lynk interest is an intrinsic one. It is purely based on the payment from Garret that in turns goes into the hands of the debt holders and back too Z Lynk in the way of equity.
In other words Z Lynk becomes partners of Garret’s allowing Garret to use the Z Lynk brand for an exchange of ownership.
Garret’s expertise is not wireless but it is for Z Lynk. Partner ships are formed all the time. Some maybe become disasters others not all that lucrative but does add a little into the big pot at the end of the day.
The biggest thing is it does allow a company to become diversified in its holdings. If Z lynks wireless technology becomes obsolete too Garret’s needs Z Lynk still holds an interest. They can sell or chose to hold the shares of Garret. They can sell Garret shares on the open market by piggy backing there interest. A little capital stock could be part of a much larger corporation. Could Garret short the new issue by being the underwriter to Z Lynk new issue. Well yes they can. They could even sweeten the pot if there so inclined.
Think out of the box. Think as if your the CEO. Follow the money.
You win some and you loose some. Jack be Nimble Jack be quick Jack jump over that falling candle stick. Jack must sell just prior to the flame going out.
No posts in 2017 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2016 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2015 from the crying towel club? HAHAHAHAHAHAHA
No posts in 2014 from the crying towel club? HAHAHAHAHAHAHA
Jasper Knabb and Stephen Durland Incarceration Update
JASPER KNABB is currently incarcerated at FCI Terminal Island (California) and is scheduled for release on October 18, 2030. The inmate is not eligible for parole. Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
Knabb is trying appeal his prison setenence.
_____________________________
STEPHEN DURLAND is currently incarcerated at FCI Estill (South Carolina) and is scheduled for release on June 7, 2014. The inmate is not eligible for parole. Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
This notice is to inform you that STEPHEN DURLAND has been approved for placement in a Community Corrections Center (CCC), otherwise known as a halfway house, and will transfer from this institution on January 15, 2014. After the transfer, the inmate will be located at Cornell Corrections, Inc. in San Francisco, California.
In addition to the information provided regarding this offender's CCC transfer, the following information is relevant to the inmate's eventual release. The inmate is scheduled to release on June 7, 2014. The inmate is not eligible for parole.
Upon release, the inmate will reside in San Francisco, California, and will be supervised by the United States Probation Office at USPO - Northern District of California - San Francisco, Northern District of California - San Francisco, Phillip Burton United States, Courthouse, Suite 17-6884, 450 Golden Gate Avenue, San Francisco, California 94102-3434.
Anyone know how many suckers I warned have moved into halfway houses for the indigent? LOLOLOLOLOL
Stephen Durland Will Move to a Halfway House in San Francisco
US Department of Justice Victim Notification System
U.S. Department of Justice
Federal Bureau of Prisons
FCI Estill
P.O. Box 699
100 Prison Road
Estill, SC 29918
Phone: (803) 625-4607
Fax: (803) 625-5629
October 02, 2013
RE: STEPHEN DURLAND
Register Number: 15637-111
Docket Number: 11-CR-00009
This notice is to inform you that STEPHEN DURLAND has been approved for placement in a Community Corrections Center (CCC), otherwise known as a halfway house, and will transfer from this institution on January 15, 2014. After the transfer, the inmate will be located at Cornell Corrections, Inc. in San Francisco, California.
In addition to the information provided regarding this offender's CCC transfer, the following information is relevant to the inmate's eventual release. The inmate is scheduled to release on June 7, 2014. The inmate is not eligible for parole.
Upon release, the inmate will reside in SAN FRANCISCO, California, and will be supervised by the United States Probation Office at USPO - Northern District of California - San Francisco, Phillip Burton United States, Courthouse, Suite 17-6884, 450 Golden Gate Avenue, San Francisco, California 94102-3434. Additionally, Client will be homeless.
Brief for the United States as Appellee
September 3, 2013
Conclusion:
"For the reasons set forth above, this Court should affirm the judgment of the district court."
Download document here:
http://www.4shared.com/office/wIxbs9EA/20130903_Brief_for_the_United_.html
If he behaves in prison, he will be eligible for parole in 2030 with 5 years of probation before the federal government stop monitoring him.
Jasper Knabb Relocates to Terminal Island, California
Federal Bureau of Prisons Inmate Locator:
http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register # 16044-111
Age-Race-Sex: 46-White-M
Release Date: 10-18-2030 (Parole Eligible)
Location: TERMINAL ISLAND FCI
FCI Terminal Island
The Federal Correctional Institution (FCI) in Terminal Island, California, is a low security facility housing male inmates.
FCI Terminal Island is located at the entrance to the Los Angeles Harbor, between San Pedro and Long Beach off Harbor Freeway (110 South) at the Terminal Island exit.
Judicial District: Central California
More Info: http://www.bop.gov/locations/institutions/trm/index.jsp
Jasper Knabb Relocates to Terminal Island, California
Federal Bureau of Prisons Inmate Locator:
http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register # 16044-111
Age-Race-Sex: 46-White-M
Release Date: 10-18-2030 (Parole Eligible)
Location: TERMINAL ISLAND FCI
FCI Terminal Island
The Federal Correctional Institution (FCI) in Terminal Island, California, is a low security facility housing male inmates.
FCI Terminal Island is located at the entrance to the Los Angeles Harbor, between San Pedro and Long Beach off Harbor Freeway (110 South) at the Terminal Island exit.
Judicial District: Central California
More Info: http://www.bop.gov/locations/institutions/trm/index.jsp
Jasper Knabb Files for Appeal of Criminal Securities Fraud Judgment
Jasper Tries the Homer Simpson Defense
"I didn't do anything wrong. I was just selling shares."
http://www.4shared.com/folder/MUiEKCgi/02_USA_v_Jasper_Knabb_Stephen_.html
Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Prison Tracker
Inmate Locator: http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register No: 16044-111
Age-Race-Sex: 46-White-M
Release Date (Projected): 10-18-2030
Location: SHERIDAN FCI
June 5, 2013 - Motion by Jasper Knabb for Court to Take Judicial Notice - He's Moving
http://www.4shared.com/office/GhR6Yz4L/20130605_Motion_by_Jasper_Knab.html
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June 7, 2013 - Appellant Jasper Knabb's Brief to U.S. Court of Appeals (Updated)
http://www.4shared.com/office/2UmlOLBJ/20130607_Appellant_Jasper_Knab.html
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June 7, 2013 - Motion by Jasper Knabb for Leave and Filing Extension
http://www.4shared.com/office/qV45kn4B/20130607_Motion_by_Jasper_Knab.html
******
June 10, 2013 - Court Order - Motion Granted for Extension to File
http://www.4shared.com/office/vdT1pkhT/20130610_Court_Order_-_Motion_.html
******
June 13, 2013 - Motion by Jasper Knabb for Time Extension to File Late Brief
http://www.4shared.com/office/IINL3idx/20130613_Motion_by_Jasper_Knab.html
Jasper Knabb's Sentencing Appeal - Signs of Desperation
June 5, 2013 - Motion by Jasper Knabb for Court to Take Judicial Notice - He's Moving
http://www.4shared.com/office/GhR6Yz4L/20130605_Motion_by_Jasper_Knab.html
******
June 7, 2013 - Jasper Knabb's Brief Opposing Court Appointed Counsel's Brief
http://www.4shared.com/office/gYrIDxIa/20130607_Jasper_Knabbs_Brief_O.html
******
June 7, 2013 - Motion by Jasper Knabb for Leave and Filing Extension
http://www.4shared.com/office/qV45kn4B/20130607_Motion_by_Jasper_Knab.html
******
June 10, 2013 - Court Order - Motion Granted for Extension to File
http://www.4shared.com/office/vdT1pkhT/20130610_Court_Order_-_Motion_.html
******
June 13, 2013 - Motion by Jasper Knabb for Time Extension to File Late Brief
http://www.4shared.com/office/IINL3idx/20130613_Motion_by_Jasper_Knab.html
HAPPY ANNIVERSARY JASPER KNABB - 1 YEAR AGO
San Francisco Chronicle
Ex-Pegasus CEO gets 21-year sentence for fraud
Bob Egelko, Staff writer, begelko@sfchronicle.com
Thursday, June 7, 2012
The former chief executive of Pegasus Wireless Corp. was sentenced Thursday to 21 years in federal prison - nearly three times as long as the term sought by prosecutors - for a multimillion-dollar stock fraud that led to the bankruptcy of the Fremont technology company.
U.S. District Judge Jeffrey White of San Francisco told Jasper Knabb he had caused "unspeakable ... misery" to investors who had lost their life savings. White said Knabb had concealed his funds and might commit new frauds "if given the opportunity." He ordered Knabb jailed immediately after the hearing.
The Securities and Exchange Commission has ordered Knabb to repay $40.8 million that he allegedly reaped from stock sales. Prosecutors acknowledged in a court filing that Knabb would be unable to make that payment.
Knabb, 46, pleaded guilty in July to securities fraud and conspiracy. Pegasus' former chief financial officer, Stephen Durland, pleaded guilty to similar charges in March 2011 and was sentenced by White in October to two years and nine months in prison. Prosecutors said Durland made $2.1 million from fraudulent stock sales.
Starting in 2005, when Pegasus was founded, prosecutors said, Knabb and Durland issued nearly half a billion shares to friends and associates to pay off a fictitious company debt, then pocketed the proceeds when the shares were sold for inflated prices.
When the scheme came to light, the stock price fell from more than $18 per share to less than $1 in four months. Pegasus filed for bankruptcy in 2008 and has relocated to Florida.
Prosecutors sought a sentence of seven years and three months, the maximum recommended by federal guidelines, saying they were bound by their plea agreement with Knabb, and credited him for admitting his guilt. Defense lawyers asked for three years and four months, saying Knabb had fully accepted responsibility and was not concealing his assets.
But White said the court's probation office had found that Knabb had hidden assets and could not be trusted. "His instinct has always been to lie and cheat," the judge said.
Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/06/07/BUSG1OUITK.DTL
Inmate Locator: http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register No: 16044-111
Age-Race-Sex: 46-White-M
Release Date (Projected): 10-18-2030
Location: SHERIDAN FCI
Judicial misconduct? Wow. Knabb really has brass balls.
Jasper Knabb a Comedian Insinuates Judicial Misconduct.......... & Ineffective Counsel....Bla..Bla..Bla
The full appeal document will be posted soon by PHILLY.
Everybody has it all wrong - he is the victim (say's Jay). To be expected he has to fill his days/months/years with something to do. (Spelling errors are Jay's not mine.) Some excerpts as follows:
The appellant, herein, “Moves” this Honorable Appellate Court to vacate his
Sentence, judgment and plea agreement based on an inadequate Rule11 plea cooloquy, a claim of “actual innocence” and a resultant manifest “fundamental miscarriage of Justice”………………………….
where: (1)the Court attempted to instill a sense of guilt
into the mind of the defendant by asserting non-criminal activity to be criminal in nature:(2)the Government may have committed what amounts to prosecutorial misconduct and/or fraud upon the court by withholding exculpatory evidence from the Court…………………………
For the district court to assert, that merely the selling and/or buying of Stock to, from or through family members is a crime, and uses its erroneous interpretation to instill a sense of guilt in the mind of the defendant and use that as a verified “factual basis” for accepting and validating the defendant’s Plea agreement, constitutes a “manifest fundamental miscarriage of Justice” that raises grave and serious questions of constitutionan doubt regarding those statutes………………..
Although defense counsel Christopher Bruno, did in fact, render ineffective Assistance of counsel guaranteed under the Sixth Amendment during the “critical” Plea negotiations and hearing stages of the proceeding by a “gross mischaracterization of [the defendant’s] possible sentence (40 months suggested in the plea agreement verse the 253 months received); and after firing Bruno, defense counsels Kirk Elliott and Mark Goldrosen, rendered ineffective assistance of counsel for refusing To file a FRcrP., Rule 11 (d) (2) (B) motion to withdraw the defendant’ plea……………………………….
On April 8, 2013, Defendant Jasper Knabb filed a motion in which he asks the Court, as a matter of equity, to relieve him from his obligation to pay the $40,847,800.79 as set forth in The Amended Judgment issued on March9, 2012. The Court also made the obligation to pay this sum a part of the criminal judgment in United States v.JasperKnabb,II-CR-O9-JSW,and Mr. Knabb has appealed that judgment. Because the obligation to pay the judgment in this case is part of the judgment in the criminal case, in light of the pending appeal, the Court DENIES Mr. Knabb's motion. IT IS SO ORDERED.
Editorial note: This order was signed by Federal Judge Jeffrey White on April 12, 2013
Too bad the judge can't toss Philly in jail. He was one of the biggest pumpers of the scam, until of course it all came back to bite him. LOL
Yes, the judge did absolutely the right thing. The prosecutor should be ashamed of himself.
I think they are two-of-a-kind.
She is lucky that Judge White didn't go after her primarily because she had a new born.
Jasper won't be eligible for parole for 17 years if he behaves during his 20 year sentence.
The ski accessory business that Jasper helped her start up is all but shut down. http://skadinordic.com
I don't know how she can afford to maintain mortgage payments, car payments and raise a kid without assistance. Maybe there is a cash buried in the backyard.
The good guys won this time. We would not take no for an answer from the SEC and DOJ. DOJ wanted a quick-and-easy plea deal agreement but the probation office and Judge White took the time to learn exactly what occured.
CFO Steve Durland was asking for 1 year and he was sentenced to 3 years.
CEO Jasper Knabb was asking for 5 years and he was sentenced to 20 years.
http://PegasusEvidence.4shared.com
Kind of cold of Laura, don't you think?
Jasper Knabb's wife, Laura Valaas, has filed for divorce and appears to be keeping the two houses that were acquired in East Wenatchee, WA.
She sold all of Knabb's clothes and other loose ends like expensive guitars on eBay.
http://wheresthemoney.4shared.com
We don't know what happened to the proceeds of the sheriff's sale of Jasper and Tammy Knabb's house in Anchorage, Alaska.
I guess the SEC is keeping it.
Send a letter to Judge White and the SEC San Francisco division for more info.
http://www.PegasusEvidence.4shared.com
Jasper Knabb's Appeal of the 21 Year Sentence
March 14, 2013
Case No. 12-10325
D.C. No. 3:11-cr-00009-JSW-2
Northern District of California,
San Francisco
COURT ORDER
The motion of Renée Paradis, Esq., to withdraw as counsel of record under Anders v. California, 386 U.S. 738 (1967), is referred to the panel assigned to hear the merits of this appeal. The panel will conduct an independent review of the record. See Penson v. Ohio, 488 U.S. 75, 80 (1988). After it conducts its review, the merits panel will determine whether counsel will be allowed to withdraw and whether new counsel will be appointed. See id. at 83-84.
Appellant may file a pro se supplemental opening brief raising any issues by April 25, 2013. On or before May 28, 2013, appellee shall file the answering brief or notify this court by letter that no answering brief will be filed. If appellee files the answering brief, the optional reply brief will be due within 14 days after service of the answering brief.
The clerk of the district court shall forward to this court the clerk’s record within seven days of receipt of this order. See 9th Cir. R. 11-4.4.
The Clerk shall serve a copy of this order on appellant Jasper Knabb individually at Reg. No. 16044-111, FCI Sheridan, Federal Correctional Institution, P.O. Box 5000, Sheridan, OR 97378, as well as on counsel for appellant.
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
The SEC has not announced a Disgorgment Fund to date. I will post the contact info for the SEC and Judge White so we can keep the pressure on.
LOL Didn't AMAX cancel all AMAX shares Pegasus received? If you pay 50 cents for a $1.00 bar of candy, and give 50 cents worth of worthless paper for the balance, the candy store owner's gonna take 'ownership' of your candy bar away from you.
Shareholder Ownership of Amax Corp. (Fremont, CA)
I haven't seen any news coming out of the SEC regarding a disgorgement fund for former shareholders. According to SEC filings, Pegasus Wireless paid $4 million cash and $4 million in shares for a 51% ownership of Amax Corp.
Contact the SEC San Francisco office and Honorable Judge Jeffrey White if you think the SEC is not doing their job. I don't think the SEC is doing their job!!!!
Alms for the poor......Jay Knabb
Breaking news..................
Laura Valaas just filed for dissolusion of marriage in Washington State Chelan County Superior Court from her "sugar daddy" - Jay Knabb. Case Number: 13-3-00049-9
He also just filed to extend his appeal of the sentence with himself as his own attorney. Seems as though those that supported him in court & in public have bailed on him, finally.
Jay the bandit - he's having another "bad" week. At least 784 weeks to go.
Jasper Knabb Files Motion for Extension to File Supplemental Brief
COMES NOW, Jasper Knabb,the Appellant, pro se,hereby, respectfully "Moves" to grant him an Extension of Appointed Counsel's Anders this Honorable Appellate Court, for the Ninth Circuit Time to File a pro se Supplemental Brief objecting to Brief, due the complexity of the case, agreement.
Additionally, the Appellant, herein respectfully "Prays" this Honorable Court will grant him Leave to file said Supplemental Brief. The appellant asserts there are issues not raised within the Anders' brief that are in his favor.
WHEREFORE, the foregoing reasons, the appellant "prays" this Honorable Court will grant leave to supplement and an extension of time.
Download here
Evidence Database
Hi Philly, do you have any idea of the Amax shares, this company is doing just geat and we are supposed to own 51% of the shares... what do the judge think about the idea to retrieve this money by selling the shares... any idea is welcome; also the Tammy's assets in LA should also make at least 8 to 10 millions... does any judge have retrieved this money by selling the real estate... I thought Robert Leach was entitled to get this money back too... Blessings to you and thanks for your continuous follow-up.
Jasper Knabb's ongoing "delima's". What goes around - comes back around.
The appeal, as most reasonable individuals see it is a waste of taxpayer monies. No matter what is sold (Rolex watches, $60,000 watch winders, guitars, gold pens, Italian suits, sports cars & etc.) it will not in the future fund a "paid" attorney to find any merit in a sentence reduction. The defendant finally messed around with the wrong people. Have a nice day Jay.
The following is why the court appointed defense attorney respectfully asked to bow out:
Anders brief is a brief filed by a criminal defendant’s court-appointed defense attorney who wants to withdraw from the case on appeal, based on the belief that the appeal is frivolous. This brief is named after the case, Anders v. California 386 U.S. 738 (1967).
According to the U.S. Supreme Court case, Anders v. California, the brief must raise all possible arguable issues for appeal in order to fulfill the requirement that counsel be an "active advocate" for his/ her client. In an Ander’s brief, the attorney who decides to withdraw the case must identify anything in record that might support the appeal. After that, the court decides whether the appeal is frivolous, and if the attorney should be allowed to withdraw the case.
Anders brief is also known as no-merits brief.
Lawyer Wants Out of Jasper Knabb Appeal Effort - Wenatchee World
http://www.wenatcheeworld.com/news/2013/jan/09/lawyer-wants-out-of-knabb-appeal-effort/
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Connection to Christian Eduardo Esquino Nunez, Starwood Management LLC, and Jenni Rivera
I don't believe that Jasper Knabb's criminal behavior was fully investigated and uncovered by the Department of Justice or the SEC. Our federal government employees saw this as a simple plea deal case in which Durland and Knabb would agree to 3 to 6 years respectively and then sentenced to 1 to 3 years based on lack of never being caught in the past. Research shows both had been running publicly-listed securities "pump-and-dumps" for the past 10 years.
Based on our team's research of Knabb's Gulfstream II and Learjet, I did know that one of the shell companies used by Knabb to own aircraft was connected to Christian Eduardo Esquino aka Ed Nunez. The names of the shell companies were STARWOOD MANAGEMENT LLC and WING FINANCIAL LLC, both located at the same address in Las Vegas, Nevada. The manager of both shell companies is Norma Gonzalez. Norma Gonzalez also happens to be the name of the person who wired money from Webster Bank in Waterbury, CT to Knabb's pilots when they had to pay for fuel and other expenses. Apparently, Jasper Knabb was laundering his money at Webster Bank where a Pegasus Wireless director named Eric Lutz happened to be Senior VP, Producing Regional Manager in Webster Bank’s Financial Advisors business, working with ultra high net worth clients.
Why did DOJ only settle for plea deals for a fake company that became listed on the NASDAQ, reached a market cap of $1.2 billion, was purchased by all Russell 1000 and 2000 mutual funds, and was shorted down to zero by the investment banks that helped to get it listed on the NASDAQ ?
Where is Poolguppy ? Maybe he can let us know if Knabb was trafficking drugs during his frequent flights between Florida, Grand Bahama and Turks and Caicos.
http://www.cnn.com/2012/12/11/us/mexico-plane-ownership/index.html
Pegasus Wireless Evidence Database: http://PegasusEvidence.4shared.com
Knabb aside -- doesn't anyone here take responsibility for losing money because of their own damned stupidity? LOL Too funny.
I don't know why people bother to warn others. Seems these folks never listen. Even if they do, they're so stupid and greedy they'll just get slaughtered on some other fraud. Hopeless! HA!!
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Important Legal Notice to Current Holders of Pegasus Wireless Corporation Common Stock From Fazio | Micheletti LLP
SAN RAMON, Calif., March 19, 2012 /PRNewswire/
Fazio | Micheletti LLP has negotiated the settlement of a shareholder derivative action brought on behalf of former Fremont, California-based Pegasus Wireless Corporation ("Pegasus") against several former members of Pegasus's Board of Directors ("Defendants").
The case is Chen v. Jasper Knabb, et. al. (Alameda County Superior Court, Case No. RG 07310978).
Plaintiff Chen, a current Pegasus shareholder, alleges that in June 2006 Pegasus's former President and CEO, Jasper Knabb, agreed to purchase 1,250,000 shares of Pegasus stock for $8 per share. In September 2006, the price of Pegasus stock had plummeted to less than $1 a share, yet the Pegasus Board of Directors voted to approve the repurchase of 870,375 shares of the stock Knabb had purchased for the original price of $8 a share-roughly eight times the then-current purchase price-causing Pegasus to effectively give away several millions of dollars to Knabb. The Defendants who appeared in the action (the "Individual Defendants") dispute these allegations and deny any liability.
Summary of Proposed Settlement. Following extensive discovery, litigation, and mediation, the Individual Defendants and their insurer have agreed to (1) pay a total of $1,450,000 ("Settlement Fund"), which shall be used to compensate Pegasus, pay the attorney fees and expenses Plaintiff's counsel incurred as a result of prosecuting the case, and pay an incentive award to Plaintiff in amounts to be approved by the Court, and (2) to pay up to an additional $50,000 in notice/administration costs (with any costs in excess of $50,000 to be paid from the Settlement Fund).
In exchange, Pegasus's claims against all Defendants will be released and the action will be dismissed.
Because the lawsuit is a derivative action brought on behalf of Pegasus, and is not a class action brought on behalf of shareholders, no shareholder will be compensated directly by this settlement and, therefore, there is no claims procedure for shareholders.
The Settlement Agreement and a Detailed Notice of Proposed Settlement can be obtained from several sources, including http://www.PegasusSettlement.com or from Plaintiff's counsel (below). Those documents contain important additional legal information. PLEASE READ THEM.
You Have a Right to Object/Comment on the Settlement. Any current Pegasus shareholder who wishes to comment on or object to the proposed settlement has the right to file a comment/objection and appear at the Settlement Hearing, provided you comply with the procedures set forth in Section 8 of the Detailed Notice prior to 05-15-12, including filing your objection with the Court Clerk, Alameda County Superior Court, 1225 Fallon Street, Oakland, CA 94612 and serving a copy on all counsel listed below. Requirements also include the need to establish that you currently own Pegasus stock.
Notice of Hearing. A hearing will be held on 06-06-12 at 3:00 p.m. before the Honorable Steven Brick, Department 17, 1221 Oak Street, Oakland, CA 94612, to determine: (1) whether the Settlement should be approved as adequate, fair, and reasonable; (2) whether the action should be dismissed with prejudice as set forth in the Settlement Agreement; (3) the award of Plaintiff counsels' attorneys' fees and costs and incentive award to Plaintiff of $2,500; and (4) any other necessary matters. Plaintiff's counsel intend to request a fee of $500,000 plus their litigation costs of $17,900, which are less than the amounts counsel actually incurred in prosecuting the case.
All dates are subject to change. Any changes will be posted on www.PegasusSettlement.com. Please check for updates.
Release. If the settlement is approved, shareholders will be bound by the decision and will be deemed to have released any derivative claims that have or could have been brought in the Action. Individual claims will not be released.
SEE THE DETAILED NOTICE AND SETTLEMENT AGREEMENT FOR IMPORTANT REQUIREMENTS FOR FILING OBJECTIONS AND FOR THE FULL RELEASE.
Counsel For Plaintiff:
Jeffrey L. Fazio
Dina E. Micheletti
Fazio | Micheletti LLP
2410 Camino Ramon, Ste 315
San Ramon, CA, 94583
http://www.fazmiclaw.com
(925) 543-2555
Counsel For Individual Defendants:
Susan S. Muck
Felix S. Lee
Jennifer Bretan
Fenwick & West LLP
555 California Street, 12th Floor
San Francisco, CA 94104
http://www.fenwick.com
(415) 875-2300
DO NOT CONTACT THE COURT WITH QUESTIONS ABOUT THIS SETTLEMENT
SOURCE: Fazio | Micheletti LLP
SEC Demands $30M from Pegasus Wireless (May 27, 2009)
SAN FRANCISCO (CN) - Pegasus Wireless Corp. and its president Jasper Knabb and CFO Stephen Durland defrauded the market for $30 million by issuing hundreds of millions of shares to, among others, Knabb's in-laws and mistress, and lying about it, the SEC claims in Federal Court.
The SEC claims Knabb and Durland forged and backdated documents, falsely told the SEC that they owned "only minimal amounts of shares," and inflated the putative value of "this once unheralded penny stock [to] a market capitalization of more than $1.4 billion. Unbeknown to investors, however, Knabb and Durland secretly controlled hundreds of millions of Pegasus shares, which they dumped on individual investors and the open market through 2006 and 2008, as Pegasus' share price steadily declined to pennies."
The SEC says Knabb and Durland "reaped more than $30 million through their securities law violations. They used the funds to support their extravagant lifestyles, including the purchase of homes, boats and sports cars."
The SEC claims that the two men "were basically printing Pegasus shares to enrich themselves. By February 2008, Pegasus had issued more than 75 percent of its total outstanding shares in this fraudulent manner."
The SEC seeks disgorgement, penalties and an injunction.
URL: http://www.courthousenews.com/2009/05/27/SEC_Demands_$30M_From_Pegasus_Wireless.htm
SEC Litigation Release: http://www.sec.gov/litigation/litreleases/2009/lr21060.htm
SEC Complaint: http://www.sec.gov/litigation/complaints/2009/comp21060.pdf
SEC Investigation Documents: http://www.4shared.com/dir/9918156/c3880480
Pegasus Wireless Filed For Chapter 11 Bankruptcy on January 28, 2008
Pegasus Wireless Bankrupty Court Documents: http://www.4shared.com/dir/6353535/7e80282e
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
Company SEC Filings: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001126752
Company Summary
Pegasus Wireless Corporation is a leading provider of advanced wireless solutions. Pegasus creates hardware and software solutions for broadband wireless networking and Internet access applications through its manufacturing facilities located in China and Taiwan. Pegasus' patented 802.11 technology is the platform for Wi-Fi technology, and the company offers cutting edge wireless products used in computer networking, industrial data transmission, and multimedia applications. Pegasus pioneered the industry's first driver-less, truly plug-and-play wireless Ethernet bridge, and the company's wireless networking products allow a higher user capacity per base station as compared to the competition. These products also offer advanced security, easy true plug-n-play installation, dynamic load balance, non-interrupting real-time roaming connectivity, e.g. VOIP, and fail-safe, self-healing mesh networking capability. Products are distributed through the company's facility located in California.
Company Share Structure
Outstanding Shares: 1.2 Billion (Call Transfer Agent)
Authorized Shares: 3 Billion (Increased from 100M to 3B on December 26, 2007)
Check for Share Structure Changes Here: https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/CorpSearch.aspx
Entity Name: Pegasus Wireless Corp
Nevada Corp Number: C9474-2000
Stock Transfer Agent
Olde Monmouth Stock Transfer Company, Inc.
200 Memorial Parkway
Atlantic Highlands, NJ 07716
Phone: (732) 872-2727
Fax: (732) 872-2728
Additional Info
Yahoo: http://finance.yahoo.com/q?s=PGSW.OB
Google: http://finance.google.com/finance?q=OTC:PGSW
OTCBB.com: http://www.otcbb.com/asp/quote_module.asp?qm_page=32245&symbol=PGSW
Pinksheets.com: http://www.pinksheets.com/pink/quote/quote.jsp?symbol=PGSW
Pegasus Wireless Files For Chapter 11 Bankruptcy (January 28, 2008)
U.S. Bankruptcy Court
Southern District of Florida
West Palm Beach Division
Web Site: http://www.flsb.uscourts.gov
Case name: Pegasus Wireless
Case Number: 08-10924-PGH
Case Assigned to: Paul G Hyman Jr
Chapter: 11, Voluntary
Date Filed: 01/28/2008
Reasons for filing chapter 11: The company has no liquid assets and is defending 9 lawsuits in 5 states.
Debtor
Pegasus Wireless Corporation
277 Royal Poinciana Way, Suite 153
Palm Beach, FL 33480
Tax id: 52-2273215
Debtor Representation
Kevin C Gleason, Esq
4121 N 31 Ave
Hollywood, FL 33021
(954) 893-7670
Email: kgpaecmf@aol.com
U.S. Trustee
Office of the US Trustee
51 S.W. 1st Ave.
Suite 1204
Miami, FL 33130
(305) 536-7285
Email: USTPRegion21.MM.ECF@usdoj.gov
Bankrupty Court Documents: http://www.4shared.com/dir/6353535/7e80282e
Pegasus Wireless Requests Shareholder Vote on Restructuring Plan (July 30, 2007, Market Wire)
Source: http://www.sec.gov/Archives/edgar/data/1126752/000116415007000100/0001164150-07-000100-index.htm
Company Flagship Product: Cynalynx (no longer available)
PC Magazine - Cynalynx Product Review (May 3, 2007): http://www.pcmag.com/article2/0,1895,2123912,00.asp
PC Magazine - Comparison of Cynalynx to Other Wireless Media Devices: http://www.pcmag.com/category2/0,1874,924250,00.asp
Pending Lawsuits Against Pegasus Wireless
Pournaras Group vs. Pegasus Wireless: http://dockets.justia.com/docket/court-candce/case_no-3:2007cv04600/case_id-195607 (Shareholder Class Action Complaint in Florida)
Note: Formerly Mitchell vs PGSW: http://securities.stanford.edu/1036/PGWC_01/
Keller vs. Pegasus Wireless: http://tinyurl.com/yotfsb (Shareholder civil complaint)
Guilfoyle vs. Pegasus Wireless: http://courtgate.coca.co.clark.nv.us/DistrictCourt/asp/CaseNo.asp (Shareholder civil complaint in Nevada)
Tsao vs. Pegasus Wireless: http://www.sccaseinfo.org/pa5.asp?full_case_number=1-06-CV-070797 (Former CEO civil complaint in California)
Convertible Debt and Share Dilution Issue
Company officers issued shares to pay 2-year convertible notes entered in 2003 and matured in 2005.
The convertible notes were allegedly acquired from a shell company that has not been disclosed to date.
2006 Q3: 5,276,016 shares issued for $263,800.80 convertible debt (See 10-Q report filed Nov 22, 2006)
2006 Q4: 10,500,000 shares issued for $105,000.00 convertible debt (See 10-K report filed April 3, 2007)
2007 Q1: 13,000,000 shares issued for $130,000.00 convertible debt (See 10-Q report filed May 21, 2007)
2007 Q2: 7,300,000 shares issued for $70,300.00 convertible debt (See 10-Q report filed August 15, 2007)
2007 Q3: 5,000,000 shares issued for $50,000.00 convertible debt (See 10-Q report filed November 19, 2007)
Total shares issued to pay convertible debt to date: 32,676,016 shares.
Total outstanding shares (as of November 19, 2007): 46,908,848 shares.
Share dilution due to convertible debt: 32,676,016 shares / 46,908,848 shares = 70% of outstanding shares (as of November 19, 2007)
SEC Filings: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001126752
Summary
Approximately 70% of the outstanding shares at the end of Q3-2007 were issued by company officers to pay an undisclosed convertible debt of $621,800.80.
Company officers have not disclosed the name of the convertible note holder or which acquired shell company had taken on this convertible debt.
Company officers have not informed shareholders of any attempt on their part to disqualify the convertible debt since it was not disclosed at time of settlement when a shell company was acquired.
Note: Company officers approved a 5-for-1 reverse share split effective on December 11, 2006. The stock was voluntarily de-listed from the NASDAQ Exchange on this date and the stock symbol was changed from PGWC to PGSW for unknown reasons.
Stock listed on NASDAQ Exchange on April 21, 2006
http://www.nasdaq.com/reference/200607/market_open_072106.stm
Note: Pegasus Wireless (PGSW, formerly PGWC) was a NASDAQ-listed company from April 21, 2006 to December 11, 2006
NASDAQ CEO Signature Series Video Interview with Jasper Knabb, CEO (July 21, 2006)
* http://www.nasdaq.com/investorscenter/ceodefault.stm
* Windows Player: http://origin.vcall.com/console/getStream.asp?ID=109178
* Real Player: http://origin.vcall.com/console/getStream.asp?ID=109179
NASDAQ Listing Timeline and Events
Apr 21, 2006: Pegasus Wireless begins trading on the NASDAQ Exchange under symbol PGWC.
June 30, 2006: Russell 2000/3000 Index funds automatically purchase shares of PGWC.
July 20, 2006: PGWC rings the opening bell at the NASDAQ Exchange
Aug 28, 2006: Russell 2000/3000 Index fund re-balancing.
Sep 25, 2006: Pegasus Wireless releases PR (8-K not filed) to announce plans to voluntarily de-list from the NASDAQ Exchange.
Oct 17, 2006: Pegasus Wireless files SEC Form 25 to end listing from NASDAQ Exchange.
Dec 11, 2006: Pegasus Wireless is voluntarily de-listed from NASDAQ Exchange at end of trading day. Stock symbol changed from PGWC to PGSW.
Amax Engineering Corporation (Fremont, CA)
Pegasus Wireless acquired a 51% controlling interest of Amax Engineering on December 22, 2005.
Amax Engineering Corporation
1565 Reliance Way
Fremont, CA 94539
Phone: (510) 651-8886
Sales: (800) 800-6328
Fax: (510) 651-4119
Email: sales@AMAX.com
Web site: http://www.amax.com/amaxres/home.asp (Engineering)
Web site: http://www.amaxit.com (Information Technology)
Amax in the news: http://www.crn.com/white-box/202101618
Sources:
http://www.sec.gov/Archives/edgar/data/1126752/000116415005000301/0001164150-05-000301-index.htm
http://www.sec.gov/Archives/edgar/data/1126752/000116415005000300/pegasus-8k_122005ex99.txt
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